Is Gayrimenkul Yatirim Ortakligi A.s. · BIST:ISGYO
Is Gayrimenkul Yatirim Ortakligi A.s — İş Gayrimenkul Yatırım Ortaklığı A.Ş. (İş GYO) — Investor Presentation (September 2016)
64 slides from Is Gayrimenkul Yatirim Ortakligi A.s's investor presentation, Sep 30, 2016
Slide 1: İş GYO
IS G¥O
Slide 2: İş Real Estate Investment Company 30.09.2016
IS REAL ESTATE INVESTMENT COMPANY 30.09.2016
Slide 3: ISGYO
ISGYO ISGYO Established in 1999, by the strategic partnership of Isbank. Sector Mcap TL 24.354 mn (Isbank is Turkey’s biggest private bank established in 1924) ISREIC The 3rd largest REIC in terms of Mcap with TL1.377 mn. TL 1.377 mn 6% Our Mission is to create desirable spaces for contemporary
Slide 4: Shareholders Structure by Ownership
Shareholders Structure by Ownership According to the Central Registry Agency of Turkey(MKK), as of 30.09.2016, the ratio of the shares in the free float is 48%. Based on this data, foreign holding ratio is 39% of the free float.
Slide 5: Why ISGYO?
WHY ISGYO?
Slide 6: Why ISGYO?
Why ISGYO? Diversified real estate portfolio, Well-qualified assets leased to financially strong and qualified tenants, Solid and steady rental income, Strong project pipeline, Low and manageable debt ratio, Stable cash dividend payments, Strong shareholder structure, Brand value as
Slide 7: ISGYO Portfolio
ISGYO PORTFOLIO isgyo.com.tr
Slide 8: Portfolio Breakdown
Portfolio Breakdown Total Portfolio TL mn % Real Estate Investments 4.339 98% Money&Capital Market Instruments 76 2% Total Portfolio Value 4.415 100% * Projects include Ege Perla Mixed Use, Manzara Adalar Mixed Use, IFC Mixed Use Project and İnistanbul Residential Project.
Slide 9: Real Estate Portfolio Breakdown
Real Estate Portfolio Breakdown Real Estate Portfolio TL mn Office 2.104 Projects 1.274 Retail 760 Land 178 Hotel 23 TOTAL 4.339
Slide 10: Rent Generating Assets
RENT GENERATING ASSETS \ at isgyo.com.tr
Slide 11: ISGYO Properties Map
ISGYO- Properties Map xa — ovo BK, ‘ Eskisehir La ¥ i i Kutahye hy pret ot aa: \ a e vse) oe os y icel _ penettiene isgyo.com.tr
Slide 12: Office Investments – Appraisal Values
Office Investments – Appraisal Values 70% of the rental portfolio is in office sector. İş İş Tuzla Ankara İş Maslak Office TUTOM Towers Towers Office Tower Building Lamartine Tower 2 Tower 3 Appraisal TL 806 TL 330 TL 321 TL 246 TL 118 TL 94 mn TL 47 mn Value mn mn mn mn mn Appraisal Value TL 47 m
Slide 13: Office Investments – Rental Income
Office Investments – Rental Income Almost 80% of the office investments generates Current Rental rental income. Income ≈ TL 120 mn İş Ankara Tuzla Maslak Sirkeci Ankara Antalya Office Ankara İş TUTOM Towers Kızılay Office** Building O.B. Ulus O.B. O.B. Lamartine Tower*** Tower 2* O.B. Annual TL 61
Slide 14: Retail Investments - Appraisal Values
Retail Investments - Appraisal Values 30% of the rental portfolio in retail sector. Marmara Kanyon Park Metro Kule Tuzla Shopping Shopping Hypermarket Çarşı Retail** Center Center Appraisal TL 440 mn TL 130 mn TL 95 mn TL 49 mn TL 33 mn Value Retail Investments Total Appraisal Value, TL mn 760 11
Slide 15: Retail Investments - Rental Income
Retail Investments - Rental Income Marmara Kanyon Park Metro Kule Shopping Center Shopping Hypermarket Çarşı Current Rental Center Income Annual ≈ TL 60 mn Rental TL 33,6 mn TL 15 mn TL 6,7 mn TL 3,7 mn Income *Figures represent the annual rental income of retail investments 11
Slide 16: TUTOM & Tuzla Mixed Use
TUTOM&Tuzla Mixed Use isgyo.com.tr
Slide 17: TUTOM
TUTOM *Designed by SOM and Dizayn Group. TUTOM Project Tuzla Mixed Use Project Tuzla Operation Center Project is the winner of “Sign of the City Award, 2015” for “Best Office”. 12
Slide 18: Technology & Operation Center (TUTOM)
Technology & Operation Center(TUTOM) Location : Tuzla, Istanbul Investment model: Turnkey Project Total area: 184.650 sqm Tenant: ISBANK Annual rental income: TL61,5 mn Duration: 25 years 13
Slide 19: Tuzla Mixed Use (Offices and Retail Area)
Tuzla Mixed Use (Offices and Retail Area) Location : Tuzla, Istanbul Completion date: 4Q2015 Total figures: Total leasable area ≈ 34.000 sqm Expected rental income(1): TL17 mn Tuzla Offices GLA ≈ 30.000 sqm Annual rental income: TL14,5 mn Tenant: SISECAM 1 Estimated rental income for the total leasa
Slide 20: Projects Under Development
PROJECTS UNDER DEVELOPMENT isgyo.com.tr
Slide 21: Projects Under Development
Projects Under Development Ege Perla Mixed Use Manzara Adalar Mixed Use İnistanbul Residential Istanbul Finance Center Project 15
Slide 22: Projects Under Development
Projects Under Development Development Cost TL Mn % Ege Perla Mixed Use Project TL 405-415 22% Manzara Adalar Mixed Use Project TL 620-640 34% İnistanbul Residential Project TL 500-550 29% Finance Center Project (IFC) TL 270-280 15% TOTAL TL1.795-1.885 100%
Slide 23: Ege Perla Mixed Use Project
EGE PERLA MIXED USE PROJECT isgyo.com.tr
Slide 24: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project Location : Konak, Izmir Land area : 18.392 sqm Estimated development cost : TL405-415 mn Project type : Mixed use project comprising residentials, home-offices and a shopping center *Designed by Emre Arolat.
Slide 25: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project is GYO isgyo.com.tr
Slide 26: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project Projections(1) : Residentials&Offices: Total saleable area : 33.000 sqm Shopping Center: Total GLA ≈ 22.000 sqm Rental income : TL17-18 mn 1 The estimated figures. 19
Slide 27: Ege Perla Mixed Use Project
Ege Perla Mixed Use Project 20
Slide 28: Manzara Adalar Mixed Use Project
MANZARA ADALAR MIXED USE PROJECT
Slide 29: Manzara Adalar
Manzara Adalar Kartal Region: one of the developing areas on the Asian side of İstanbul, ongoing urban transformation in the region, easy access supported with different means of transportation, close to the industrial zone of İstanbul and planned to be «the commercial center of the future».
Slide 30: Manzara Adalar
Manzara Adalar Project Land: located below the E5 highway(1,6 km) 1,8 km to the sea side, 16 km to Sabiha Gökçen airport, easy access with subway, road and sea transportation, close to hospitals, universities and the newly built court house.
Slide 31: Manzara Adalar
Manzara Adalar Location : Kartal, Istanbul Investment model: Revenue sharing model. Revenues of the project will be shared with the ex-land owner. Project type : Mixed use project *Designed by Perkins&Eastman. Projections (1): Development cost (excluding land) : TL620-640 mn Saleable area for reside
Slide 32: Manzara Adalar - Projections
Manzara Adalar - Projections Strategy : To sell the residentials and keep the rent generating offices & retail area in the portfolio. Total leasable area : 50.000 sqm Total saleable area for residentials : 140.000 sqm Total Expected rental income(ISGYO’s share) : TL24- 26 mn * The estimated figures.
Slide 33: Manzara Adalar
Manzara Adalar isgyo.com.tr
Slide 34: İnistanbul Residential Project
İNISTANBUL RESIDENTIAL PROJECT
Slide 35: İnistanbul Residential Project
İnistanbul Residential Project Topkapı Region: transformation area supported with new real estate projects, industry is dominant in the north side of the region, while south side dominated by residentials, an intersection point for transportation, supported by every means of transportation,
Slide 36: İnistanbul Residential Project
İnistanbul Residential Project
Slide 37: İnistanbul Residential Project
İnistanbul Residential Project Location : Topkapı, Istanbul Acquisition date : December, 2013 Investment model: A joint venture between İş GYO and NEF. Total development cost* : TL1-1,1 bn Total sales revenues*: TL1,5-1,6 bn Total saleable area*≈ 250.000 sqm *Total figures. Designed by Perkins+Will
Slide 38: İnistanbul Residential Project
İnistanbul Residential Project 1st Project 3rd Project İnistanbul GALA İnistanbul HAYAT *İnistanbul Residential project is the winner of “Sign of the City Award, 2015” for “Best Architectural Design”. 2nd Project 4th Project İnistanbul LOKAL İnistanbul KONSEPT 26
Slide 39: Basketball Court, Cinema Room, Guest Room
Basketball Court Cinema Room Guest Room Music Room
Slide 40: Mixed Use Project in Istanbul International Financial Center
MIXED USE PROJECT in ISTANBUL INTERNATIONAL FINANCIAL CENTER (IFC Project)
Slide 41: IFC Project
IFC Project Location : Atasehir, Istanbul Project type : A mixed use project comprising offices and retail area. Estimated development cost: TL270-280 mn Estimated saleable/leasable area : ≈ 32.000 sqm Estimated rental Income : TL45-50 mn *Designed by
Slide 42: Land Investment
LAND INVESTMENT isgyo.com.tr
Slide 43: Tuzla
Tuzla Tuzla is one of the developing transformation areas on the Asian side of Istanbul. 29
Slide 44: Tuzla Land
Tuzla Land ~𝟐 km ~𝟖𝟎𝟎𝐦𝐭 Location : Tuzla, Istanbul Acquisition date: January, 2016 Land area: 62.655 sqm 30 Land value: TL143,5 mn
Slide 45: Dividend Payout
DIVIDEND PAYOUT isgyo.com.tr
Slide 46: Dividend Payout
Dividend Payout • Concerning the distribution of profits, REICs are subject to same regulations like all other companies listed in BIST. • In ISGYO’s dividend policy dividend is determined as “ not less than 30% of the total distributable income”. The dividend may be distributed in the form of cash
Slide 47: Debt & Cash Position
DEBT & CASH POSITION isgyo.com.tr
Slide 48: Debt & Cash Position for 9M2016
Debt & Cash Position for 9M2016 Outstanding Loan Outstanding Original Original Amount Loan Bank Loans Amount mn Date of the Loan Cost Maturity mn TL mn Euro Loan € 24,2 Dec. 2010 Euribor+350 bps 10 year € 12,1 40,7 TL Dolar Loan $75,0 Oct. 2013 Libor +425 bps 10 year $66,2 198,3 TL TL Loans 473,0 TL
Slide 49: Financials
# Financials”
Slide 50: ISGYO
ISGYO Total Assets TL mn Total Portfolio TL mn 42% 39% 5.000 17% 5.000 20% 4.000 4.000 3.000 3.000 4.125 4.036 2.000 2.000 2.476 2.909 2.905 2.415 1.000 1.000 0 0 2013 2014 2015 2013 2014 2015 Rental Income TL mn 16% 135,0 130,0 125,0 135,0 120,0 115,0 116,1 116,4 110,0 105,0 2013 2014 2015
Slide 51: Balance Sheet
Balance Sheet TL, mn 30.9.2016 31.12.2015 % Change ASSETS 4.491,8 4.125,2 9% Current Assets 364,5 459,9 -21% Long-term Assets 4.127,3 3.665,3 13% LIABILITIES 4.491,8 4.125,2 9% Short-term Liabilities 203,0 556,0 -63% Long-term Liabilities 1.421,7 778,6 83% Shareholders' Equity 2.867,1 2.790,6 3% Of
Slide 52: Income Statement
Income Statement TL, mn Jan.-Sep. 2016 Jan.-Sep. 2015 Sales Revenue 309,0 179,9 Cost of Sales -155,0 -55,5 Gross Profit/Loss 153,9 124,4 General Administrative Expenses -14,4 -10,7 Marketing, Sales and Distribution Expenses -17,9 -12,0 Other Operating Income 74,9 162,7 Other Operating Expense -37,6
Slide 53: Income Statement
Income Statement Financials (TL, mn) Jan.-Sep. 2016 Jan.-Sep. 2015 Sales Revenue 309,0 179,9 Cost of Sales -155,0 -55,5 Gross Profit/Losses 153,9 124,4 General Administrative Expenses -14,4 -10,7 Marketing, Sales and Distribution Expenses -17,9 -12,0 Other Operating Income 74,9 162,7 Other Operating
Slide 54: Stock Performance
STOCK PERFORMANCE isgyo.com.tr
Slide 55: Trade Volume
Trade Volume Average Daily Trade Price change in TL ISGYO Volume terms 2015 TL 5,6 mn 42% 2016 TL 4,1 mn 9% 39
Slide 56: Stock Price vs. Index Performance
Stock Price vs. Index Performance Stock Price& Performance as of 30.09.2016 1 year 3 year 5 year ISGYO 37% 86% 139% BIST REIC 16% 18% 17% BIST 100 3% 3% 28% 40
Slide 57: Real Estate Portfolio
REAL ESTATE PORTFOLIO isgyo.com.tr
Slide 58: Appraisal Value of the Real Estate Portfolio
Appraisal Value of the Real Estate Portfolio Appraisal Property Name Value TL mn % Real Estate Projects 1.273,6 29% TUTOM 805,8 19% Is Towers II&III 651,3 15% Kanyon Shopping Center 440,0 10% Tuzla Office&Retail 279,1 6% Lands 178,3 4% Marmara Park Shopping Center 130,0 3% Ankara Is Tower 118,0 3% M
Slide 59: Investment Models of the Rental Portfolio
Investment Models of the Rental Portfolio Developed By ISGYO Purchases&Disposals İş Towers Complex(2000) Ankara İş Tower (1999) Office Lamartine(2013) Maslak Office Building(2001) Tuzla Offices and Retail(2015) Seven Seas Hotel(2001)* •Joint Venture Kemer Imperial Hotel(2010)* Kanyon Shopping Center
Slide 60: Regulation Highlights
REGULATION HIGHLIGHTS isgyo.com.tr
Slide 61: REICs
REICs Real Estate Investment Companies (REICs) can invest in; • Real estate, • Rights and capital market instruments backed by real estate, • Real estate projects and • Money&capital market instruments.
Slide 62: Regulation Highlights
Regulation Highlights REICs are subject to REIC’s communiqué issued by Capital Markets Board(CMB) of Turkey. • REICs have to offer their shares to the public equal to at least 25% of their issued capital. • REICs have to invest at least 51% of their total asset value into real estate, rights and pro
Slide 63: Regulation Highlights
Regulation Highlights • REICs can not in any way be involved in construction of real estates and can not recruit personnel and equipment with this purpose. • REICs properties must be valued by an independent appraisal company authorized by the CMB. • REICs are exempt from corporate taxes and income
Slide 64: Investor Relations
Investor Relations Ayşegül Şahin Kocameşe Head Investor Relations Phone : +90 0212 325 23 50 E-mail : aysegul.sahin@isgyo.com.tr This presentation has been prepared in order to inform Mine Kurt Yıldırım investors. Assistant Manager Investor Relations Since the presentation has been prepared regardin
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